Prestige Consumer Healthcare Inc. · NYSE:PBH

Prestige Consumer Healthcare — Prestige Brands Holdings — Q3 FY2015 Earnings Presentation

23 slides from Prestige Consumer Healthcare's earnings presentation, Feb 5, 2015

  1. Slide 1: Review of Third Quarter FY 15 Results

    Review of Third Quarter FY 15 Results February 5, 2015 Exhibit 99.2

  2. Slide 2: Safe Harbor Disclosure

    T h i r d Q u a r t e r F Y 1 5 R e s u l t s 2 This presentation contains certain “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements about the Company’s product introductions, geographic expansion, investments in brand buildin

  3. Slide 3: Agenda for Today's Discussion

    T h i r d Q u a r t e r F Y 1 5 R e s u l t s 3 Agenda for Today’s Discussion Third Quarter FY 15 Review I. Performance Highlights II. Financial Overview III. FY 15 Outlook and the Road Ahead

  4. Slide 4: Performance Highlights

    ==" Third Quarter FY 15 = Performance Highlights Pe aan PrestigeBrands = =——s third Quarter FY 15 Results

  5. Slide 5: Q3 Performance Highlights and Outlook

    T h i r d Q u a r t e r F Y 1 5 R e s u l t s 5 Q3 Performance Highlights and Outlook  Q3 consolidated Revenue of $197.6 million, up 36.4% versus PY Q3 – Organic growth of +2.9%(1) on a constant currency basis, and +2.1% on a dollar basis versus PY Q3  Core OTC consumption growth of +5.5% (ex. Ped

  6. Slide 6: Portfolio Strategy Achieving Desired Results

    T h i r d Q u a r t e r F Y 1 5 R e s u l t s 6 Core OTC International Other OTC Household Contribution to Portfolio: # of Brands: Investment: Targeted Mix Over Time(5)(6): Q3 FY 15 % Organic Growth: (Constant Currency Basis)(1) Invest for Growth Manage for Cash Flow Generation 11% 11% ~25% of Total

  7. Slide 7: Core OTC Consumption Growth Has Accelerated

    T h i r d Q u a r t e r F Y 1 5 R e s u l t s 7 Core OTC Consumption Growth Has Accelerated, Contributing to Sustained Sales Momentum Consumption Growth Organic Sales Growth (1.8%) 1.0% 1.6% 0.8% 3.9% 5.5% Q1 Q2 Q3 (5.0%) (4.2%) 2.8% (2.4%) 0.0% 8.3% Q1 Q2 Q3 FY 15 Core OTC, excludes Insight Pharmac

  8. Slide 8: Q3 Core OTC Growth Was Broad Based

    T h i r d Q u a r t e r F Y 1 5 R e s u l t s 8 Q3 Core OTC Growth Was Broad Based % of Core OTC Portfolio with Consumption Growth in Q3 10 5 Core Brands Growing Declining Accelerating Core Growth is Broad Based 78% Growing Brands* Proportion of Core Retail Sales 6.0% 13.3% 15.6% Q1 Q2 Q3 0.4% 3.6%

  9. Slide 9: Targeted Campaigns Drive Revenue

    T h i r d Q u a r t e r F Y 1 5 R e s u l t s 9 TV & Radio Social Media & Digital Presence Targeted Campaigns Drive Revenue 6.4% 2.8% 4.4% 1.5% L-12 L-52 BC Category Real People Speak About Real Relief Hispanic Regional Activation Program Billboards On-Air Recommendations Consumption Growth Results

  10. Slide 10: Clear Eyes Growth in Key Segments and Channels

    T h i r d Q u a r t e r F Y 1 5 R e s u l t s 10 Clear Eyes Growth in Key Segments and Channels Successful Marketing Campaign with Target Audience Robust Marketing Campaign & Distribution Gains Drive Clear Eyes To #1 in Redness Relief With Revenues to +$100 Million at Retail Consumption Growth 15.7%

  11. Slide 11: Restore Investment in Health Care Professionals to Reinvigorate Growth

    T h i r d Q u a r t e r F Y 1 5 R e s u l t s 11 Source: IRI MULO + C-Store, L12-week period ending December 28, 2014. Restore Investment in Health Care Professionals to Reinvigorate Growth The Consumer Journey 6 Initiatives to Restore Leadership Historical Consumer Trends  Doctor visit essential a

  12. Slide 12: International Scale Contributing to Growth Profile

    T h i r d Q u a r t e r F Y 1 5 R e s u l t s 12 International Scale Contributing to Growth Profile Australasia Initiatives Underway Hydralyte New Product Development  Strong pipeline of innovation − Supported by HCP sampling, PR and digital campaigns − Continued success of driving consumption occa

  13. Slide 13: Successful Integration of Insight Pharmaceuticals

    T h i r d Q u a r t e r F Y 1 5 R e s u l t s 13 Successful Integration of Insight Pharmaceuticals Regulatory / Quality Assurance Systems / Back-Office Supply Chain Sales & Distribution  IT systems and processes transferred  Personnel and offices transitioned Brand Building Expect to Complete by E

  14. Slide 14: Financial Overview

    T h i r d Q u a r t e r F Y 1 5 R e s u l t s 14

  15. Slide 15: Selected Observations on Third Quarter Performance

    T h i r d Q u a r t e r F Y 1 5 R e s u l t s 15 Selected Observations on Third Quarter Performance  Excellent overall financial performance in the quarter exceeded expectations − Achieved organic growth of 2.9%(1) excluding the impact of foreign currency − Revenue of $197.6 million, an increase of

  16. Slide 16: FY 15 Third Quarter and YTD Consolidated Financial Summary

    T h i r d Q u a r t e r F Y 1 5 R e s u l t s 16 Dec '14 Dec '13 % Chg Dec '14 Dec '13 % Chg Total Revenue 197.6$ 144.9$ 36.4% 524.6$ 454.3$ 15.5% Adj. Gross Margin 113.1 80.5 40.5% 298.4 257.7 15.8% % Margin 57.2% 55.5% 56.9% 56.7% A&P 30.1 24.2 24.4% 74.3 67.5 10.1% % Total Revenue 15.3% 16.7% 14.

  17. Slide 17: Strong Free Cash Flow Generation

    T h i r d Q u a r t e r F Y 1 5 R e s u l t s 17 Q3 FY 15 Q3 FY 14 YTD FY 15 YTD FY 14 Net Income - As Reported 21.3$ 3.1$ 54.5$ 56.6$ Depreciation & Amortization 5.2 3.6 12.0 10.3 Other Non-Cash Operating Items 12.6 15.9 30.6 25.4 Working Capital 8.0 2.7 7.0 (11.4) Operating Cash Flow 47.1$ 25.3$ 1

  18. Slide 18: Strong Cash Flow Leads to Rapid Delevering and M&A Capacity

    T h i r d Q u a r t e r F Y 1 5 R e s u l t s 18 Strong and Consistent Cash Flow Leads to Rapid Delevering and Building of M&A Capacity Leverage Ratio(8) FY 15E FY 16E FY 17E ~$1.6 BN +$2.0 BN ~$0.6 BN Illustrative Financing Capacity(9) ~5.6x ~5.4x ~5.1x ~4.4x ≥4.0x Q2 FY 15 Q3 FY 15 FY 15E FY 16E F

  19. Slide 19: FY 15 Outlook and the Road Ahead

    T h i r d Q u a r t e r F Y 1 5 R e s u l t s 19

  20. Slide 20: Stay the Strategic Course to Continue to Create Shareholder Value

    T h i r d Q u a r t e r F Y 1 5 R e s u l t s 20 Stay the Strategic Course to Continue to Create Shareholder Value Insight Integration FY 15 Full Year Outlook M&A Strategy Brand Building  Continue investment and focus on Core OTC and International to drive consumption growth  Deliver new product i

  21. Slide 21: Key Drivers of Long-Term Shareholder Value

    T h i r d Q u a r t e r F Y 1 5 R e s u l t s 21 Key Drivers of Long-Term Shareholder Value Develop a Portfolio of Leading Brands Capitalize on Efficient and Effective Operating Model Deliver Robust and Consistent Free Cash Flow Execute Proven and Repeatable M&A Strategy  Portfolio of recognizable

  22. Slide 22: Q&A

    T h i r d Q u a r t e r F Y 1 5 R e s u l t s 22 Q&A

  23. Slide 23: Appendix

    T h i r d Q u a r t e r F Y 1 5 R e s u l t s 23 Appendix (1) Revenue Growth on a constant currency basis is a Non-GAAP financial measure and is reconciled to its most closely related GAAP financial measure in our earnings release in the “About Non-GAAP Financial Measures” section. (2) Adjusted Gros

Prestige Brands Holdings — Q3 FY2015 Earnings Presentation on 6ix